2023 Assistance Programs for Buying a First Home in Pennsylvania

Whether purchasing your first home or your seventh in Philadelphia Pennsylvania and surrounding areas, homebuying has become a bit more of a challenge in the last few years. This is not only true right here in the Philadelphia area but all over the country.

Many people have become skeptical of the ability of Americans to be able to afford the purchase of a first home because they do not have the profit of a home sale to help them out. There is good news for Pennsylvania first-time buyers, The state has several programs to help first-time homebuyers become homeowners on both state and local levels.2023 Assistance Programs for Buying a First Home in Pennsylvania

Available First Time Buyer Programs in 2023

Loans For First-Time Buyers in Pennsylvania

The state of Pennsylvania has a Pennsylvania Housing Finance Agency which is often referred to as the PHFA. This agency provides a good number of loan programs focused on first-time buyers to help them with the various aspects of affording a home purchase. Many of these loans offer down payment assistance.

There are also programs like a mortgage credit certificate from this agency. This provides a tax credit that reduces a first-time buyer’s responsibility for federal income taxes. This can help to free up usable income and help a buyer qualify for a better home loan.

It is good to note that if a buyer’s credit score is less than 680 the PHFA will require the borrower to attend a credit education or counseling course through one of the approved counseling agencies. They require the borrower to take an in-person course to qualify for these mortgage programs.

There are many different programs helpful to first-time buyers through the PHFA. These include the FHA Preferred Mortgage, the Keystone home loan program, the Keystone government loan, and more. Some of these programs may include income limits and purchase price caps. The benefits however include lower down payment requirements and more flexible underwriting rules as well as the ability to obtain private mortgage insurance at a lower rate.

Grant Programs

There are many helpful grant programs available to first-time homebuyers looking to purchase a home in Philadelphia and Pennsylvania. These offers come from several different areas one of the most readily available is through the help of the PHFA.

Most of these grants come in the form of what is considered a forgivable loan instead of an outright grant. These can include the Keystone Forgivable in 10 Years loan program, the Keystone Advantage Assistant loan program, the Homestead Down Payment and Closing Cost Assistance loan, the First Front Door program, the Access Down Payment and Closing Cost Assistant program, and more.

All of the information for these programs can be found on the PHFA website. They each come with their own specific set of qualifiers and it is good to read every detail to determine if you are eligible and what might be your best choice. You can also talk this over with a real estate professional and a financial advisor to get more insight.

Where Philadelphia buyers can find home-buying help

There are a number of programs available to homebuyers in Philadelphia and Pennsylvania. It can quickly become confusing on where to look for these programs or what programs are actually valid and trustworthy.

A great place to start is with your trustworthy local real estate agent and with government programs. In Philadelphia, there is the Philadelphia Division of Housing and Community Development and the Philly First Home Program. On the state level of course there is the PHFA.

These programs are here to help first-time buyers but they also have a large amount of information so starting small with a local real estate agent and talking over your homebuying goals and strategies is the best place to start. They can share their expertise with you in the simplest of terms and help give advice on what programs are available to you that would fit your personal needs and help you attain your specific Philadelphia homebuying goals.

If you are curious about your home-buying options in Philadelphia please contact me. I am here to help make the homebuying process as seamless and stress-free as possible no matter if you were purchasing your first Philadelphia home or your 10th. Contact me anytime for all information on greater Philadelphia real estate.